FAQ

3 min readMar 19, 2021

Who’s Conjure for?

Conjure has 3 main users

Liquidity Providers and Borrowers — These users mint the Synth asset by providing ETH to then sell to the public, these users do this as they are bullish on the ETH price / asset price and mint assets by collateralizing the CDP, selling the asset, then buying the assets back later for a lower ETH amount to profit. They also fuel Uniswap markets to provide liquidity on these assets and get fees.

End User — These users are simply holders and buyers for these synths. They want exposure to these assets and want a way to hold a token in their ETH wallet that allows them to have price exposure to the Synth Assets’ underlying value. Say you want to buy Platinum you would go find a Synth for the Platinum price, using one that meets your risk tolerance and choosing from the potentially many available Synths, each using their own oracles, structure and potentially community.

Creators — These users create the Synths, setting the token Name, Symbol and the structure as well as oracle sources for the Synth. They create the framework and contracts needed for the Synth to be minted and set how the price is determined for the Synth. They are able to set a fee which gets applied to any Synth mints, creating an incentive for them to grow the adoption for the Synth as much as possible and making sure they have funds to update the oracles.

Why Conjure?

Conjure allows you to create any asset on Ethereum that you want. Lets say that you want to be able to have exposure to the price for Platinum on Ethereum. Currently there are no good tokens that allow for you to just hold a token which allows you to have that exposure. This would be the case for many assets where there is no token or way for users to get exposure to assets in a decentralized and safe way. Conjure allows these markets to be met by allowing anyone to create any asset they want to represent any asset that theres demand for.

From single assets like platinum and bitcoin, to complicated assets such as indices and baskets, real world assets such as the SPY(SNP500) and arbitrary assets which are completely abstract, Conjure supports it. Ethereum’s about tokenizing and settlement for the financial space. Conjure allows limitless assets to be ported easily and effectively onto the Ethereum network, giving people access to the tools they need and want and opening up the ability to tokenize any asset to anyone, anywhere.

Other projects also offer Synthetic Assets but users are not free to create them. People looking to create their own Synths either need to get the proposal through a DAO or need the skills and tools to create and deploy their own front end and contracts, Conjure provides anyone the tools to create the assets they want, when they want.

What’s in it for CNJ holders?

To align the governance token to have enough value to be able to be secure by the Treasury being taken by malicious actors, and needing to scale proportionally to the funds in the Treasury, every user that mints an asset pays a small fee (if the creator set a fee), which part goes to a stake pool where users lock up their governance tokens to earn these fees (making sure that theres incentive to not have large supply on the open market and having a cost basis for attack) as well as giving incentive for holders to promote the platform to grow revenue. Part also goes to the Treasury, where holders can vote what to do with the funds to further grow the platform using a fund pool and pay for communally beneficial activities such as dev, audits and promotion.